Cross Collateral Loan

[Micah Casey]

Has anyone done a cross collateral loan before? There is land that I am trying to purchase and build a house on. From what I'm hearing from a couple lenders is that I will need 25% down for the land purchase which of $600K and another 25% down for construction cost of about another $600K. So all in I would be at $1.2 mil land and construction. I only have enough for 25% down on the land ($150K). I was just informed that I could cross collateralize my current residence which I have equity of about $400K so I would not need to come up with the 25% down for the construction. Does this mean that my current home and new build home would be connected in a way that would not be able to sell one with out the other down the line? Any advice on this would be great. 

[Chris Seveney]

Quote from @Micah Casey:

Has anyone done a cross collateral loan before? There is land that I am trying to purchase and build a house on. From what I'm hearing from a couple lenders is that I will need 25% down for the land purchase which of $600K and another 25% down for construction cost of about another $600K. So all in I would be at $1.2 mil land and construction. I only have enough for 25% down on the land ($150K). I was just informed that I could cross collateralize my current residence which I have equity of about $400K so I would not need to come up with the 25% down for the construction. Does this mean that my current home and new build home would be connected in a way that would not be able to sell one with out the other down the line? Any advice on this would be great. 

 If this is a primary residence then more difficult. Why not take a line of credit on your existing home. As it appears you only need $300k